🖤 Donations of all sizes power our public service journalism Give Now

Apple cuts orders for iPhone parts following weak demand

David Brancaccio Jan 14, 2013
HTML EMBED:
COPY

Apple cuts orders for iPhone parts following weak demand

David Brancaccio Jan 14, 2013
HTML EMBED:
COPY

Apple’s stock is down sharply this morning after a report that demand for the iPhone 5 is waning. The Wall Street Journal reports Apple has cut orders for iPhone 5 components, like screens, because of the weak demand.

Some analysts have been expecting this for a few weeks, and now Reuters and the Wall Street Journal have what looks like hard evidence that while the iPhone is doing well, it now faces fierce competition from smartphones made by other manufacturers such as Samsung. 

If the weakening sales are a hint the iPhone is falling out of vogue, it would mean Apple might not be able to keep demanding high prices for its gear moving forward.

There have been rumors in recent days of a so-called iPhone mini — a smaller iPhone or an iPhone stripped of some features that sells for less. Such a device could either expand Apple’s market or cannibalize sales and hurt profits.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.